North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency got two great programs for First Time Home Buyers. These systems would be the Mortgage Credit Certificate and also the Down Payment Assistance Program.

You also buy a property between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of the programs, you can even be eligible for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? There is a First Time Home Buyer someone who has not owned a house within the past three years. This is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability based on a share of the mortgage interest that you pay.

You'll be able to claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes, in case you are eligible for the MCC. You are able to save around .

You may be able to unite this with the $8,000 tax credit, should you qualify for 2009. This may reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the price of the property and also your income you're buying. Household income is defined as the “gross income of the mortgagor and every other person expected to reside in the home who's 18 years of age or older.”

The income and house price limits that apply in Orange, Durham and Chatham Counties are listed below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limits New Home $220,000 Existing Dwelling $210,000

The customer just needs to pay and the load would pay up to .

This plan has more stringent income limits than the MCC program summarized above. Like the MCC application, it might be used in combination with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, cannot be applied in conjunction with the MCC. It is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Individuals $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Support Sales Cost Limits New Home $210,000 Existing House $210,000